Ti Cycles Of India, Amattur vs M.K.Gurumani & Ors

The Supreme Court held that incentive wages, calculated based on piece rates, fall within the definition of 'wages' under Section 4(2) of the Payment of Gratuity Act, 1972. The Court affirmed the High Court's ruling that the distinction between 'wages' under the Gratuity Act and 'basic wages' under the Employees Provident Funds & Miscellaneous Provisions Act, 1952 is significant, and incentive payments should be included in gratuity calculations. The appeal by the employer was dismissed, upholding the entitlement of the workmen to receive gratuity based on their total earnings, including incentive wages.